Zooly adds automated payroll tax withholding for cross-border placements

The feature detects the worker's tax residency and the placement's actual work location — which are frequently different for cross-border and hybrid placements — to apply the correct withholding rate automatically at payroll run time. Previously, agencies running placements across two or more jurisdictions had to calculate withholding manually or via a third-party tool, then re-key the result into Zooly before generating payslips. The new withholding engine also accounts for applicable double-taxation treaty relief where both the worker's home country and the work-location country have an agreement in place, flagging placements where treaty relief may apply so the agency's payroll team can review before finalizing.

Automated withholding is available immediately for placements involving the Netherlands, Belgium, Germany, and France, and is enabled by default for all new cross-border placements created after this release. Existing placements can be migrated to automated withholding from the placement settings panel; agencies with active placements are encouraged to review the migration guide before switching mid-cycle to avoid a mismatch between manually and automatically calculated withholding within the same payroll period.